Credit challenges, uncertain timelines, and market conditions can all change your decision to rent or buy a home.
Is renting always a bad financial move, or are there times when it is actually the smarter choice?
Many people, particularly younger renters, tell me they are firm on renting and not interested in buying right now. They often assume that because I’m a Realtor, I’m going to try to talk them out of renting. But the truth is, there are plenty of situations where renting makes more sense.
Don’t get me wrong. I’m passionate about building wealth through real estate. There is a saying that you are going to pay a mortgage either way: it’s just a matter of whether it’s your mortgage or your landlord’s. While I am definitely pro-buying, it doesn’t fit every case.
Here are some reasons why renting is the right strategy:
Credit or financial readiness. If your credit situation makes it difficult to qualify for a loan, renting can be the right short-term choice while you work on improving it. Renting gives you time to improve your credit, stabilize your finances, and put yourself in a stronger position before buying.
Purchasing a home before you are financially prepared can create long-term pressure that outweighs the benefits of ownership.
Uncertain timelines. If you just moved to a new area, are still learning the neighborhoods, or are unsure whether your job or timeline will work out long term, flexibility matters.
In the past, we could confidently say that buying and selling within a year or two would still work out financially. That is no longer something we can count on. Home prices are not guaranteed to rise fast enough in a short period of time to cover selling costs.
If you need flexibility with location or timeline, renting allows you to stay nimble without locking yourself into a long-term commitment that may not align with your plans.
Market conditions. Renting does not always work the same way in every market. In some areas, higher home prices and higher interest rates mean that rental income does not come close to covering mortgage payments.
In other markets, rents are inflated because owners are trying to recover their own high costs. In those cases, one strategy may be to rent a smaller or local property, while buying an investment property in a different market where the numbers make more sense.
This is where having the right strategy and guidance matters. I work with a network of agents across different markets who can help evaluate what purchase prices and rents look like in other areas if building wealth elsewhere is part of your goal.
Renting does not mean giving up on buying or wealth building. In many cases, it is simply a temporary step that allows you to position yourself more effectively for the future.
If you have questions, I am here to help. Reach out at (503) 522-0090 or sarita@asksarita.com. You can also visit me at asksarita.com. We can look at your goals, finances, and options to come up with a strategy that actually fits your life.
